Mutual fund houses temporarily suspend fresh subscriptions in gold fund of funds

More than a dozen mutual fund houses including SBI Mutual Fund HDFC Mutual Fund ICICI Prudential Mutual Fund and Kotak Mutual Fund have temporarily suspended fresh subscriptions in their gold fund of funds FoFs starting this FridayThe suspension will remain in force until further notice according to the notices issued by the respective fund houses Gold FoFs invest money into Gold Exchange Traded Funds ETFs rather than buying physical goldThe restrictions cover fresh lumpsum investments switchin transactions and new registrations for systematic investment plans SIPs and systematic transfer plans STPs among other inflows in the affected schemesSome fund houses have also extended the restrictions to goldsilver FoFs The move comes ahead of the festive season when gold demand typically picks up as consumers buy the yellow metal on Dhanteras and Diwali which are considered auspicious occasions for gold purchasesMore fund houses are expected to suspend fresh subscriptions in gold F0Fs as market participants said the restrictions were imposed following directions from the Securities and Exchange Board of India SebiHowever the notices issued by the mutual fund houses did not specify the reasons for the moveInvestors can continue to redeem their existing investments while instalments under already registered SIPs and other eligible systematic investment plans will continue to be processed according to the noticesAmong the fund houses that have announced the suspension are SBI Mutual Fund Tata Mutual Fund ICICI Prudential Mutual Fund HDFC Mutual Fund Aditya Birla Sun Life Mutual Fund Zerodha Mutual Fund Groww Mutual Fund Axis Mutual Fund HSBC Mutual Fund DSP Mutual Fund Invesco Mutual Fund Nippon India Mutual Fund Quantum Mutual Fund Mirae Asset Mutual Fund LIC Mutual Fund UTI Mutual Fund and Kotak Mahindra Mutual FundIn a notice to investors Kotak Mahindra Asset Management Company said it has decided to temporarily suspend the acceptance of freshadditional lumpsum investments switchin transactions new SIPSTPinflows registrations including stepup in existing SIP under Kotak Gold Fund amp Kotak Gold Silver Passive FOF with effect from October 16Also Axis Mutual Fund announced a temporary suspension of specified transactions in Axis Gold and Silver Passive FoF from the cutoff time of 3 pm on October 16Gold exchangetraded funds ETFs attracted net inflows of Rs 4450 crore in September compared to Rs 2597 crore in the preceding month according to the Association of Mutual Funds in India AmfiThis is not speculative accumulation it is defensive capital fleeing equity drawdowns and debt uncertainty Nitin Agrawal CEO Mutual Funds InCred Money had said on the inflowThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever